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Replies (11)
- Gordon Haraway, "1stTimebuySpecialist"
- Contributions:250
It is impossible to give you the best answer without knowing more about your finances and the HELOC. On the heloc, are you paying interest only? Is it low for ten years then adjusts higher for the final 10 years? Is it a 10 yr, 15, or 20yr heloc? As you can see without knowing the terms of the heloc it is impossible to make an informed answer.
- Andy Matejka, "tejks"
- Contributions:352
When was your home last appraised? The appraised value will be a key factor in considering whether you can do this.
Unless you've been diligent enough to pay extra principle; you are likely to have little equity which might make a 15 yr. loan difficult to obtain when you include paying off the HELOC.
However, you would certainly save $ and generate equity by combining to a 15 yr. loan.
It's a great idea, though.
Unless you've been diligent enough to pay extra principle; you are likely to have little equity which might make a 15 yr. loan difficult to obtain when you include paying off the HELOC.
However, you would certainly save $ and generate equity by combining to a 15 yr. loan.
It's a great idea, though.
- ini2011
- Contributions:6
On heloc I am paying interest and principal - payment is &350/month. It's a 15 year year loan. This 3.25 rate is a variable interest rate. IT was fixed for first 6 months then changed to variable after 6 months. I have not had it appraised, but the mortgage broker looked on some appraisal sites and said I should have enough equity, and I have been paying extra to principal on my 1st. He said I will not be paying any closing costs, except prepayment of escro and interest. My new payment will be a little lower then what I pay on both mortgages currently. It sounds good to me, but want to know if there is any reason I should not that I do not know about. I am 8-9 years into my 30 year fixed mortgage.
- Clay Branch, "Georgia Loans"
- Contributions:7839
It sounds like a good plan since your new payment will be lower than your current loan payments and you are eliminating the adjustable 2nd. You may ask how much the lender credit would be at 3.5% and 3.625% because if you are only getting an extra .250 or .375 to go from 3.5 or 3.625% up to 3.875%, then you would be better off to pay the difference of a few hundred dollars but get a lower rate.
- ini2011
- Contributions:6
On truth and lending disclosure papers what does "will not be entitled to a refund of part of the finance charge mean". This is checked on the lending disclosure papers, is this ok.
- Caveat Emptor
- Contributions:500
Y-E-S
it doesnt really make much difference in the monthly stuff, but you'll save thousands in the total interest paid over the life of the loans. more principal, less interest, lower payment, build real equity... excellent plan.
PS, good job in not refinancing every 14 months like a lemming
it doesnt really make much difference in the monthly stuff, but you'll save thousands in the total interest paid over the life of the loans. more principal, less interest, lower payment, build real equity... excellent plan.
PS, good job in not refinancing every 14 months like a lemming
- Hamp Yonce, "Zilluminati"
- Contributions:3463
"will not be entitled to a refund of part of the finance charge mean"
This just means that none of the fees you paid on the refi will be refunded if you refi again or payoff early. That is normal and OK.
The GFE is the most important disclosure document. The APR calculation is about the only thing that can be messed up on the TIL. There are internet calcs to check it with.
This just means that none of the fees you paid on the refi will be refunded if you refi again or payoff early. That is normal and OK.
The GFE is the most important disclosure document. The APR calculation is about the only thing that can be messed up on the TIL. There are internet calcs to check it with.
- ini2011
- Contributions:6
My interest rate is 3.85%, but APR is 4.0095% what is the difference?
- Hamp Yonce, "Zilluminati"
- Contributions:3463
The fees called the "prepaid finance charges" are factored into the APR, as if they were all prepaid interest. They are added to the loan amount, the adjusted loan amount is used to then calculate the theoretical rate of interest, known as the APR.
- ini2011
- Contributions:6
On the question above I meant 3.875% and APR 4.0095%, why is it higher.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
If all the fees are what you agreed to, then the APR just is what it is. It is a theoretical interest rate that considers some of the fees you pay as cost of getting the loan, and hence, a form of interest. If the fees match what you were told, then the APR should be OK. Sometimes the Lender will leave a fee (or two) out of the calculation, which is mainly supposed to be a shopping comparison tool, so that there numbers look better.
refinance 1st and 2nd to 15 year mortgage?
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